Agricultural Product Derivatives - Egypt

The nominal value in the Agricultural Product Derivatives market is projected to reach US$7.28bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 5.33% resulting in a projected total amount of US$9.44bn by 2029.
The average price per contract in the Agricultural Product Derivatives market amounts to US$0.02 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached United States (US$12.32tn in 2024).
In the Agricultural Product Derivatives market, the number of contracts is expected to amount to 318.30k by 2029.

Definition:

The Agricultural Product Derivatives market refers to derivatives of agricultural products such as coffee or rice. These include financial vehicles such as options and futures. Derivatives allow investors to profit from a commodity’s value development without owning the physical commodity (e.g. instead of owning a unit of rice, an investor could own a derivative of rice). Therefore, physical commodities are out of scope in this analysis.

Structure:

The market contains the following KPIs: annual notional value, the number of traded contracts, the open interest (number of outstanding contracts at the end of a year), the average notional value per contract as well as the price data of popular specific derivatives of this category.

Additional information:

Examples of popular Agricultural product derivatives are coffee, rice, or barley.

Agricultural Product Derivatives, e.g. cotton, wheat, rice

Physical agricultural products

Egypt's Agricultural Product Derivatives market is experiencing significant growth and development recently. Customer preferences in Egypt are shifting towards more diversified investment options, including Agricultural Product Derivatives, as investors seek higher returns and risk management strategies in their portfolios.

Trends in the market show an increasing demand for Agricultural Product Derivatives in Egypt, driven by the country's expanding agricultural sector and the need for price hedging mechanisms among farmers and agribusinesses. Local special circumstances in Egypt, such as government initiatives to boost agricultural productivity and the presence of a well-established financial market infrastructure, are contributing to the growth of the Agricultural Product Derivatives market in the country. Underlying macroeconomic factors, including stable economic growth, favorable regulatory environment, and increasing participation of institutional investors, are further fueling the development of the Agricultural Product Derivatives market in Egypt.

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.